DoT meet to discuss BSNL-MTNL synergy tomorrow

20th March 2005: The department of telecom (DoT) will meet the CMDs of two telecom PSUs - BSNL and MTNL - and consultant I-Sec tomorrow to discuss the possibilities of either making MTNL a subsidiary of BSNL or merging it with BSNL. I-Sec, the consultant appointed by the government to look into the possibilities of synergies of BSNL and MTNL, has suggested that MTNL be made the subsidiary of BSNL as the first option with both the PSU boards remaining independent.

In case of subsidiarisation of MTNL, BSNL may have to buy out the 56% stake the government holds in MTNL. While MTNL is listed in India and the US, the government wholly owns BSNL. BSNL would then have to be listed, and its shares allotted to MTNL shareholders. The second option was MTNL's merger into BSNL, I-Sec said. BSNL and MTNL have taken diametrically opposite positions on the synergy move with the former favoring taking MTNL as its subsidiary instead of going for a merger, and MTNL opposing the suggestion.

OBC to complete GTB merger by June '06

16th March 2005: The integration process of Global Trust Bank with Oriental Bank of Commerce (OBC) would be completed by June 2006, its chairman and managing director B D Narang said. Narang said that GTB, which had been taken over by OBC, was still making losses, which were booked into the accounts of the acquirer bank. In the last two quarters, GTB had posted losses of Rs 65 crore and Rs 10 crore respectively, adding that the operations was likely to post a profit in the last quarter. Narang said that in the next financial year, GTB was expected to contribute Rs 350 crore into the profit and loss account of OBC. Some of the steps which were taken for full integration with OBC were those of merging the balance sheet of the two entities at both the head office and branch levels, and addressing the staff issue for which National Institute of Bank Management (NIBM) had been engaged. At the time of acquisition of, OBC had inherited a loss of Rs 1,415 crore.

DATS merges with Ireland-based Europlex

15th March 2005: DATS India Ltd, a leading system integrator in the country, and Ireland-based Europlex Technologies Ltd, on Tuesday announced their merger to form iMetrex Technologies. The company said that the merged entity would make its Indian operations a hub for development and manufacturing of integrated security systems products for the world market. The combined entity, which would have a sales turnover of about Rs 100 crore by this fiscal-end, would invest Rs 12-15 crore to set up the development and manufacturing centre in a 4.5 acre campus in Siruseri, on the outskirts of Chennai, Rajeev Mecheri, managing director, iMetrix Technoligies, said. While the entity would be known as iMetrex Technologies, the company would continue to retain Europlex and DATS brand names for their respective products and services, he said.